Personal loans for 1099 contractors
A personal loan for a 1099 contractor is a standard unsecured installment loan underwritten with independent-contractor income. Lenders weight 1099 earnings similarly to W-2 income once you can document the history and consistency.
Why apply here.
- 01Full-time and part-time 1099 contractors both qualify
- 02Loan amounts from $1,000 to $40,000
- 03APRs typically 7.99% to 35.99%
- 04Documentation: 2 years of 1099s, tax returns, and recent bank statements
- 05Multiple 1099 income streams can be combined for qualification
About this loan.
How do lenders verify 1099 income?+
Two main signals: your federal tax returns (showing 1099 income summed on Schedule C or as 'other income') and recent 1099 forms from the payers. Some lenders also want 3-6 months of bank statements to verify the deposits match the reported income.
Is 1099 income treated worse than W-2 income?+
Slightly. Lenders see 1099 income as somewhat less stable than W-2 because contracts can end. The discount is usually small for established contractors (2+ years, stable client base), and disappears entirely for borrowers with strong credit.
What if I have both W-2 and 1099 income?+
Most lenders will count both. This is the strongest income profile for a contractor, the W-2 portion gives the lender a 'floor' of stable income, and the 1099 piece adds capacity. Bring documentation for both.
Can I get a personal loan if I just started contracting?+
Harder, but possible. Strong credit (700+) and a recent strong W-2 history in the same field help significantly. Some lenders accept a single tax year of 1099 income; others want two. Pre-qualification (soft pull) shows you who'll work with you.